If a Corporation Declares a 10% Stock Dividend, Then

question 54

Multiple Choice

If a corporation declares a 10% stock dividend, then

• A) the share price of the stock will most likely remain unchanged.
• B) the share price of the stock will most likely decline by about 9%.
• C) the share price of the stock will most likely increase by about 10%.
• D) each shareholder will get a 10% cash rebate off his or her next round lot purchase of the stock.

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Definitions:

Coal Mine

A site for the extraction of coal from the earth, typically involving underground or open-pit operations.

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since the asset was acquired and made available for use.

Trade-in Allowance

The amount credited to a buyer by a seller for the property or goods being part-exchanged.

Accumulated Depreciation

The total depreciation for an asset that has been recorded up to a specific point in time, reflecting its decline in value.